Federal Reserve Board Vice Chairman Alice M. Rivlin resigned Thursday, effective July 16.

A member of the Fed since June 1996, Ms. Rivlin said she will return to the Brookings Institution with a joint appointment to its Economic Studies Program and its Urban Policy Center. Ms. Rivlin, 68, also plans to continuing heading the D.C. Financial Assistance Authority, the board set up to help the District of Columbia clean up its finances.

"That should allow me to do more research and writing of my own, manage the Financial Authority until it goes out of business, and spend more time with my husband and my grandchildren," Ms. Rivlin wrote in her resignation letter to President Clinton.

Fed Chairman Alan Greenspan praised Ms. Rivlin's work on the payments system, saying it "inspired a new focus on the role of the central bank in fostering electronic payments."

Before joining the Fed, Ms. Rivlin was director of the Office of Management and Budget. This will be her fourth stint at Brookings.

With Ms. Rivlin's exit, the Fed will have two openings on its seven- member board.

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